Long-Term Debt That Matures Within One Year and Is to Be

question 48

Multiple Choice

Long-term debt that matures within one year and is to be converted into shares should be reported

• A)as a current liability.
• B)in a special section between liabilities and equity.
• C)as part current and part non-current.
• D)as non-current if the refinancing agreement is completed by the end of the year.

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Definitions:

Assets

Economic resources owned by a business that are expected to provide future benefits or value.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, including assets, liabilities, and equity.

Owner's Capital

Represents the total equity belonging to the owners of a company or business, reflecting the net assets minus liabilities.

Accounts Receivable

Money owed to a company by its customers from sales or services rendered on credit, recorded as an asset on the balance sheet.